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<br />. .. <br /> <br />Seven Party Agreement, and (3) the Basin States and the Secretary reached <br /> <br />agreement on revised "interim surplus criteria," subject to approval of the QSA by <br /> <br />the California agencies by December 31,2002. The required approval by lID by that <br /> <br /> <br />date did not occur, principally because lID was unwilling to bear its share of the cost <br /> <br />of mitigating the environmental impacts of the SDCW A transfer on the Salton Sea, a <br /> <br />large, dying lake that is an important part of the Pacific Flyway for migratory birds. <br /> <br />Consequently, the interim surplus criteria have not gone into effect and the <br /> <br />Sel~retary has cut back deliveries to California for 2003 to 4.4 MAF with significant <br /> <br />impacts on MWD and IID. IID has sued the Secretary over its curtailment and <br /> <br />MWD has intervened in support of the Secretary, but negotiations among the <br /> <br />parties are continuing. <br /> <br />(6) Desalination <br /> <br />MWD is currently exploring with its member agencies the development <br /> <br />of a seawater desalination plant that would provide 50,0000 - 150,000 AF annually. <br /> <br />b. Arizona <br /> <br />In 1996 Arizona created the Arizona Water Banking Authority ("AWBA") to <br /> <br />implement a program by which Arizona's unused annual Colorado River <br /> <br />ap:portionment from the Secretary could be stored underground and later withdrawn <br /> <br />for use in Arizona. It was also authorized to carry out a program for interstate <br /> <br />banking and exchange of unused apportionments. In November 1999, the Bureau <br /> <br />34 <br />